DIRE DAWA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT
OROMIA REGION, EAST HARARGHE,
BABILE TOWN.

Aannan Babile Milk Production Enterprise

Project proposal.

June, 2022

Babile
 contents

Executive Summary

COMPANY PROFILE

1 Project Name AANNAN BABILE MILK PRODUCTION

ENTERPRISE.
2 Project owner Mrs. Fuad Mohammed

3 Project Location East Hararghe, Babile District town at

Babile Site.
4 Head of organization/business, Mrs. Fuad Mohammed.

please specify if individual

5 Project Composition Building Used for cows’ shelter

6 Premises Required 20,000 M2on which building to be

constructed and for grazing

7 Start Up Capital 2,500,000

8 Job opportunity It Will generate employment opportunities

for 10 individuals permanently

1. Introduction

Agriculture is the mainstay of the country’s economy, foreign exchange

earnings and domestic consumption. Most of the population engaged in
agricultural activity and earn its livelihood from the sector. However, the
highlands of Ethiopia are one of the densely populated and poorest regions in
the world with per capita income of US$ 110 (World Bank, 2002). Like in
many developing countries, poverty, food insecurity and poor nutrition are
persistent problems especially among the rural population predominantly
dependent on low productive semi–subsistence farming. Population growth
(World Bank, 1989; Cleaver and Gotz, 1994), and declining agricultural
productivity and inadequate market participation of producers (World Bank,
1991) are few of the factors underlie this trend.

Countries that are currently enjoying the highest standard of living are those that
have a well–developed animal agriculture as demand for animal products
increases with economic development. In the Ethiopian context, despite the
huge potential the country has to produce milk, there is a chronic shortage of the
product in most part of the country. This arises mainly from insufficient
production coupled with inhibitive cultural taboos related to consumption and
absence of proper processing and marketing (Zegeye, 2003). Therefore,
improving livestock productivity and their respective marketing activities may
improve the sector’s contribution to the GDP.

Dairying is a means of providing an additional source of employment and

income to small and marginal farmers. The smallholder farmers produce about
93% of dairy products (Tsehay, 1998)
It is only small quantity of this production that is marketed in the form of liquid
milk; the larger volume is processed into different dairy products for home
consumption and sales. Large scale marketing and processing of milk is limited
to the area around Addis Ababa, which is the Addis Ababa milk shed. It appears
that butter dominates dairy marketing, and the transaction in the form of raw
milk is limited around major urban centres. There are a few milk-processing
plants in Ethiopia, one is owned and operated by the government (Dairy
Development Enterprise) and others are private. The processed products of
these plants are pasteurised fluid milk, table butter, and hard cheese, yoghurt
and ayib (cottage cheese) (Zegeye, 2003).

This profile envisages the establishment of cattle dairy farm with annual
capacity of thirty (30) heads exotic cows and fourteen (14) locally cows heads
cows for dairy at the initial stage heads of cattle. The present demand for cattle
milk is estimated at 127,731 tons per annum. The demand is projected to reach
229,334 tons by the year 2012.The envisaged project will create employment
opportunity for about 10 persons. The total initial investment cost of the project
is estimated at Birr 2,500,000 out of which 383,713 are for plant housing and
equipment.

1.1. Farm Description and Background Profile of Babile town

This business plan profile envisages the establishment dairy farm of with annual

capacity thirty (30) heads exotic cows and fourteen (14) locally cows for dairy
at the initial stage. Babile town is a town which is located in East Hararghe zone

of A.A at ? km. The town about ? km from East Hararghe Zone

Administration.

Annual average temperature ranges from 140c to 250c (Celsius) and

characterized by sub-tropical agro-climatic zone dominated by sub-tropical
grassland. Latitudinal it about 8°32′N8.533°N 37.967°E / with an altitude 1500
and 2000 meters above sea level. Babile is the administrative center of Babile
District.

Economic activity of the town is dominated by Agricultural particularly crop

production and animals raring which are produced in traditional and at
household level. The stream of animal raring especially dominated by the
quantity of animals (number) without taking in to consideration animals’
products as a result one can clearly exhibit that the life of the community is
unchanged. Poverty, unemployment, illiteracy etc. are partly the population
characteristics of farmers in Babile Woreda and districts adjutant to Babile
town. Changing the perception of the community towards animal’s products and
transforming production mechanisms are most important pillars of life-change
of the indicated communities. In addition, this modernizing milk production and
productivity is one of the most important agents of change. Fresh milk sales by
smallholder farmers are important only when they are close to formal milk
marketing facilities, such as government enterprise or milk groups.

Farmers from such formal marketing outlets prefer to produce other dairy
products instead, such as cooking butter and cottage cheese. The vast majority
of milk produced outside urban centres in Ethiopia is processed into dairy
products by the households, and sold to traders or other households in local
markets (Debrah and Berhanu, 1991). Most of the milk is produced in the rural
areas, while the profitable market for it exists largely in the urban centres. The
major portion of the milk comes from small dairy farmers with few milk
animals located in the rural areas.

What is produced on the animal farm has to reach the market, and the nearer the
market the lesser would be the transportation charges and the lesser would-be
loss due to spoilage. Hence, milk being the most perishable commodity,
requires an efficient marketing and market outlet. The price gap between the
terminal and primary markets seems to be large. Under these conditions,
farmers may have no incentives to improve the quality of their produce.

1.2. Project Justification

As one part of agricultural sector, dairy is generating most of their business

from business persons, business men, and customers from different towns
around Babile. Nevertheless, the development of this sector not enough
compare with the demand of the people.

In addition to the above facts the following points taken by the promoter for the
project justifications;

 The government of Ethiopia is promising in the second growth and

transformation development plan (GTDP) that will bring prosperity to its
citizens with collaboration with private sector investment actions.

 The regional government (Oromia) conducive packages for development

and poverty reduction.

1.3. Background of the promoter

The promoter of the envisioned Milk production enterprise has ample business
experience and management skill in different sectors. Currently he needs to
extend his experience, management skill and financial asset to the envisioned
milk processing factory.

2. Statement of the Problem

The major constraint to increase the welfare of small holders is their inability to
access markets. Enhancing the ability of poor smallholder farmers to reach
markets and actively engage in them is one of the most pressing development
challenges. Remoteness results in reduced farm-gate prices, returns to labour
and capital, and increased input and transaction costs. This, in turn, reduces
incentives to participate in economic transactions and results in subsistence
rather than market-oriented production systems. Sparsely populated rural areas,
and high transport costs are physical barriers to accessing markets; lack of
negotiating skills, lack of collective organizations and lack of market
information are other impediments to market access. In addition, there are factor
that give rise to inefficiencies to a marketing system. These factors may
originate in technical barriers including lack of market information, structural
elements and government programmes and policies. Costs of marketing are
usually high due to poorly developed physical and institutional facilities,
absence of marketing services such as standardization, market information,
financing arrangement, storage, transportation, processing, etc.

This would otherwise result in high risk of marketing and high barriers to
growth, and poorly motivated producers and inadequate marketing institutions.

The primary reason, among others, seems to be the inefficient marketing that is
characterized by inadequate marketing facilities and high margins. The price
gap between the terminal and primary markets seems to be wide. Under these
conditions, farmers may have no incentives to improve the quality of their
produce through proper management practices (Jones, 1972).

An efficient, integrated, and responsive market mechanism, that is, market with
good performance is of crucial importance for optimum allocation of resources
in agriculture and for stimulating farmers to increase output (Jones, 1972; FAO,
1999; Acharya and Agarwal, 1999). Without having convenient marketing
conditions, the possible increment in output, rural incomes and foreign
exchange resulting from the introduction of improved production technologies
could not be effective. An improvement in marketing efficiency, thus, attracts
the attention of many countries and viewed as an important national
development strategy.

The market planning process and policy preparation often take place with little
or no consultation with people for whom the planned activities are intended.
Many agricultural product markets have been monopolized and controlled by
parastatal agencies, and because price had been set administratively rather than
through market forces, the allocation of resources, therefore, had become highly
inefficient (Scarborough and Kydd, 1992).

The population growth, urbanization and income growth that fuelled the
increase in milk consumption during the last two decades are expected to
continue in the future, creating a veritable livestock revolution. This revolution
presents new and expanding market opportunities for smallholder livestock
producers.

Inappropriate policies and misallocation of investment resources could,

however, skew the distribution of the benefits and opportunities away from
those smallholders who could potentially gain the most from this revolution
(Delgado et al., 1999). Being understanding the above constraints of farmers
under such challenge are supported whatever means can be an agent of change
and sustainable development

“AANNAN BABILE” MILK PRODUCTION ENTERPISE is created in

order to tackle the above indicated problems and organized to share the burdens
of the community Surrounding Babile town and supplying to consumers in
Babile, Harer, Haromaya, Aweday and Dire Dawa City. Besides from the
consumer side fresh and protected hygiene milk is supplied what not be ignored
is also that establishment of the enterprise become the center of employment for
member of enterprise in agreement way and for other four (4) persons in a per
time bases.
3. Project Description

3.1 Company Background

Physical characteristics: -“AANNAN BABILE” MILK PRODUCTION
ENTERPISE is private Sector firm which is participate on Milk production &
which is located in the eastern part of east Hararghe zone along Harer to Jijiga
main road, the company Supply animals feeding from different nearby kebele’s
like ,Tulu Haro, Jaarraa,Dendama, and Babeh extending from 5-10 km from
Babile.

“AANNAN BABILE” MILK PRODUCTION ENTERPISE Strategy by

collecting from different customer exists in different customer about 1000 Tons
per month seeks to increase per capital Animals feeding Supply consumption
through promotion of consumption by current Feeding consumers and the one
third of the surrounding Population as we have that does not consume milk. In
addition, it seeks to formalize the dairy value chain and, considering the health
benefits, orient consumers to consume processed milk instead of the raw milk
currently being consumed.

“AANNAN BABILE” Milk Production Enterprise is a private Sector firm milk

contributes to an Eastern part of the country milk supply largely through
distributes to Harer, Awadey, Haromaya and Dire Dawa and supplied for the
consumers of Babile town itself. The informal milk exports can be as much as
around 16,200 liters of fresh and fermented milk per month. However,
opportunities for export of value-added products, particularly cheese, to all
districts which exists in south east hararghe zone because of lower product
prices.
Challenges that have precluded formal exports include the poor quality of raw
milk and weak enforcement of milk standards. However, this challenge is being
tackled through the introduction of milk and dairy products certification
programs and milk quality regulations for the whole dairy value chain.

“AANNAN BABILE” Milk Production Enterprise designed to reduce poverty

through expanded marketing of good quality farm that generates income and
employment, and improves nutrition of rural households and also aims to
achieve this by linking existing and new smallholder dairy producers to
expanding market demand driven by improved quality, reduced transaction
costs and increased investment all along the dairy value chain. A key
implementation approach for “Aannan Babile” Milk Production Enterprise is
support to provide quality Milk for the community

3.2. Purpose of project

“Aannan Babile” Milk Production Enterprise: -In order to strength a capacity

for production of Milk and the volume of farm actually processed and supply to
consumers by the formal market and cow’s milk 540 lit per day to consumers.

4. Objective of the project

4.1. General Objective

The project’s general objective is to improve production and productivity of

Milk development activities in the area through distributing the quality and
fresh for the community.

4.2. Specific Objective

In line with the above objective, the project has the following specific objectives

 To create employment opportunities for unemployed grouping the area.

 To create market linkage between the towns and surrounding area

 through supplying different inputs and raw materials for the Enterprise.

 To provide milk result for the surrounding community

 To promote the town image.

5. Market for Products (Demand Projection)

The increase in household farm consumption is mainly a function of three
demand determining variables i.e., population, income and consumption habit.
The total population growth rate in Ethiopia is 2.9% per annum, while that of
the urban population growth rate is 4% per annum. The consumption of milk by
the rural population is expected to increase as a result of higher income. Hence,
in order to estimate the probable level of future demand, present demand is
assumed to increase by a slightly higher rate than the urban population growth
rate, i.e.,5% per annum.
In order to generate more income from milk production and feeding supply, the
enterprise can decide to market for the products its selves. Knowledge of the
markets is essential if you want to make profit, and you should gather as much
information as possible.
6. Management Team
Labor: Labor Requirements and wage rates for both scenarios are presented in
table below. Table for labor requirement and annual wage rates.
Position Requirements Salary per Annual
month Wage

General manager 1 3,000 36,000

Accountant 1 2,500 30,000

Cashier 1 1,500 18,000

Cleaner 2 900 21,600

Security 2 700 16,800

Purchaser 2 900 21,600

Milk receptionist 1 800 9,600

Total 9 10,300 153,600

7. Equipment and material

SN Description of cost items Unit Qty Cost (Birr) Remarks

Unit Total
1 Cream (centrifugal separator) Pc 2 15,000 30,000
2 Butter churner pc 2 7,500 15,000
3 Deep measure Pc 2 3,800 7,600
4 Manual stirrer Pc 2 6000 12,000
5 Milk can 40 lit Pc 4 1,500 6,000
6 Milk thermometer Pc 4 500 2,000
7 (Milk can 60 lit). Pc 4 2,000 8,000
8 weighing scale Pc 2 2500 5,000
9 Lacto meter Pc 2 350 700
10 Milk acidity test Pc 2 750 1,500
11 (Plastic Burrell) (Large)200lit Pc 5 800 4,000
12 Powder soap(omo) Pc 80 12 960
13 Soap pc 80 12 960
14 Alcohol Lit 16 50 800
15 Boots Pc 8 200 1,600
16 Bucket pc 8 50 400
17 Brush 8 50 400
18 Jug pc 8 120 960
19 Plastic sheet Meter 30 50 1,500
20 Protective cloths Pc 8 200 1,600
21 Clean material Pc 8 50 400
Total 101,380

8. Feed Supply and Major feed resources

Natural pasture is the main source of feed for most of Ethiopia’s livestock,
complemented by fodder and crop residues during the dry season. Of the
various crop residues used as livestock feedstuffs, teff straw is the most
commonly used for fattening, while other crop residues (e.g., barley, wheat and
millet straw or sorghum Stover Maize Stover) are more often used for dairy
cattle. Agro-industrial by-products and commercial feed mixes are less
commonly used by small-scale livestock producers, although they are critical
inputs for livestock fattening prior to slaughter or export. In particular, wheat
bran from flour mills and oilseed cakes from edible oil factories are an
important source of feed ingredients.

SN Description of cost items Unit Qty Cost (Birr) Remarks

Unit Total
1 Agro-industrial byproducts Lit 420 10 4,200

2 Molasses Lit 2000 0.81 1,620

3 Crop residue Ton 1,500 50 75,000

4 Hay Ton 20 1,400 28,000

Total 108,820

9. Construction of House for the Dairying

Housing for Dairying

C O S T S U M M A R Y
DESCRIPTION AMOUNT (BIRR)
1. Excavation & Earth Work 36,000.00
2. Stone Masonry Works 54,653.00
3. Concert Works 70,653.00

4. Block Works 45,000.00

5. Roofing Works 75,570.00
6. Carpentry & Joinery 35,000.00

7. Metal Works 35,500.00

8. Finishing Works 56,500.00
9. Glazing Works 20,650.00
10. Sanitary installation 20,840.00
11. Electrical installation 4,000.00

Total 383,713
10. Construction of fence site

 Cost is estimated as follows:

 An area of 20m x 20m = 400m2 is assumed to be adequate

 Its total perimeter will be

PROJECT: FENCE WORK

FOR Dairying
Item Description AMOUNT
1.1. Supply and fix 200cm high barbed wire fence with diameter 99,200.00
10-12cm impregnated eucalyptus post the pole shall be fixed
at an interval of 200cm, and diagonal members shall be at
every 10meters and at every corner, all the poles and diagonal
members shall belayed in 60cm deep and diameter 40cm mass
concrete C-15 base. The barbed wire shall be in 11 horizontal
rows and 2 diagonals price shall include excavation and cart
away surplus excavated material. All complete according to
the drawing
1.2. Supply and fix 400x250cm double leaf metal gate made of 30,287.00
3mm thick flat metal sheet on and including three 60x60cm
well-dressed AGL and semi dressed BGL stone masonry
column. Price shall include RHS, Gate stopper, handle,
approved type of lock, three coats of oil paint, all earth work,
pointing to stone masonry, concrete copping with all the
necessary accessories.
1. 3. Carpentry & Joinery 15,000.00
Total carried to summary 144,487.00

11. Financial Analyses

11.1 Underlying Assumption
The financial analysis of dairy farm development and buy product of industry
animals feeding plant is based on the data provided in the preceding sections
and the following assumptions.

11.2. Construction and Finance

Construction of Housing period 6 Month

Source of finance 30% equity and 70% loan

Tax holidays 2 yeas

Salary and wages increase By 3% after year 3

Bank interest rate According to National Bank of
Ethiopian policy /Ethiopian Government
Policy
Office furniture 10%

11.3. Source of Fund

No Description % Share Amount (in ET birr)
1 Owners share 30% 750,000
2 Bank Loan 70% 1,750,000
 Total 100% 2,500,000

11.4 . Loan repayment schedule

Year Principal payment Remaining balance

0 0 1,750,000
1 200,000 1,550,000

2 200,000 1,350,000
3 200,000 1,150,000

4 200,000 950,000

5 200,000 750,000

6 200,000 550,000

7 200,000 350,000

8 150,000 200,000

9 100,000 100,000

10 100,000 0
11.5. Depreciation Schedule

S. No Description Original Depreciation Depreciati

Value in birr rate in % on per
year

1 Construction and civil work 528,200 6% 316.92

2 Equipment’s and Materials 101,380 10% 101.38

3 Office Equipment’s 10,000 10% 10

Total 428.3

11.6. Investment
The total investment cost of the project including working capital is estimated at
Birr 2,500,000. The Owner shall contribute 30% of the finance in the form of
equity while the remaining 70% is to be financed by bank loan (Commercial
Bank).
Table 6: Investment cost
Investment Costs
No Unit Total
Investment Type (Items) Units Quantity Remarks
. cost Cost
1 Crossbred cows No 30 50,00 1,500,000
2 Local cows No 14 7,000
0 98,000
3 Office furniture No 10 1000 10,000

Total Investment Cost 1,608,00

0

11.6. Pay –back period

The investment cost and income statement projection are used to project the
pay-back period. The project’s initial investment will be fully recovered within
Nine (9) year of operation.
12. Economic and Social Benefits and Justification
The envisaged project possesses wide range of benefits that help promote the
socio-economic goals and objectives stated in the strategic plan of the Oromia
National Regional State. It boosts inter sectarian linkage between the
agricultural (livestock) and industrial sector. At the same time, therefore, it
helps diversify the economic activity of the town. The other major benefits are
listed as follows:

12.1. Profit Generation

The project is found to be financially viable and earns on average a profit of
Birr 819,078 first year and continuously increasing through the year. Such result
induces the project promoters to reinvest the profit which, therefore, increases
the investment magnitude in the region.
12.2 Employment and Income Generation
The proposed project is expected to create employment opportunity to several
citizens of the region. That is, it will provide permanent employment to 10
professionals as well as support staff. Moreover, the envisaged plant benefits
rural income from the sale of Milk, Yogurt Butter and Cheese and the like. This
would be one of the commendable accomplishments of the project.

13. Sustainability

In order to maintain the sustainability of the organized Dairy Development

activities in the kebele, the close collaboration and coordination of the
stakeholders is very necessary. Major stakeholders playing vital role in Dairy
Development value chain and all are responsible in their respective duties and
responsibilities
The Woreda Livestock & Fishery Development office and Agency Small and
Micro Enterprise Office assigned at kebele, they have responsibilities in the
 areas of capacity building and extension services. The Woreda Office will take
over and administrate all the properties owned by the kebele and control its
proper uses and services. The involvement of Trade and Market Development
Office situated at Woreda level in the provision of market information and in
creating market linkage with the traders/collectors/processors) will be
encouraged. In general, linking the Dairy and feeding Supply with other value
chain actors will realize the sustainability of the project and enabling them
benefiting much from the sector.

14. Cost benefit Analysis

Item Desertion costs Price Per Per Total price Total sales
day month per month per year
Milk cost (Price of raw cow’s 15 540lit 16,200 lit 243,000 birr 2,916,000
milk (ETB/liter) birr
Yogurt (ETB/unit)/cup 10 birr 40 1200cup 12,000 144,000
cups
Butter package (ETB/unit) 200 birr 20kg 600 kg 12,000 144,000
Cheese package (ETB/unit) 80 birr 20kg 600kg 12,000 144,000
Total sales 279,000 3,348,000
Overhead Costs (ETB/Year
Cost of the activities for 1000 1000 1000 12,000
Medical (ETB) /month
Variable electricity 1000 1000 1000 12,000
consumption (KWh/year
Total overhead cost 2,000 24,000
 15.Revenue projection
Based on the price and the capacity program of the “Aannan Babile” Milk
Production Enterprise” the revenue of the enterprise projected as indicated in
the table below.

15.1. Expected Income/Loss Statement

“AANNAN BABILE” MILK PRODUCTION ENTERPISE”

Expected income loss statement for the year to be ended (2019-2021)

Production Years
Descriptions Year 1 Year 2 Year 3
Revenue

Sale Revenue 3,348,000 4,017,600 4,553,280

Purchase of Raw Materials and Inputs 1,808,200 1,898,610 1,993,541

Gross profit 1,539,800 2,118,990 2,559,739

Expenses

Salary Expense 153,600 148,992 153,600

Operating and administrative expense 21,660 22,800 24,000

Deprecation of Building 316.92 316.92 316.92

Deprecation of Machineries 101.38 101.38 101.38

Deprecation of office Equipment’s 10 10 10

Interest Expense 170,000 155,000 135,000

Overhead expenses 24,000 24,000 24,000

Total Expense 369,688 351,220 337,028

Profit Before Tax 1,170,112 1,767,770 2,222,711

Tax (30%) 351,033.6 530,331 666,813.3

Net Profit 819,078 1,237,439 1,555,898

15.1. Balance sheet

Asset
Current Asset
Cash 819,078
Inventory of Raw materials and inputs 1,831,142.3
Total Current Asset 2,650,220.3
Fixed Asset
Land, Building and Construction 528,200
Machineries and Equipment’s 101,380
Office Equipment 10,000
Total Fixed Asset 639,580
Less: accumulated deprecation (428.3) 639,151.7
Total Asset 3,289,372
Liability
Current liability
Salary expenses 153,600
Operating and administrative expense 21,660
Interest Expense 170,000
 Account Payable 24,000
Tax payable 351,033.6
Total current Liability 720,294

Owners’ Equity
Capital 1,750,000
Net income 819,078
Total Liability & owners’ Equity 3,289,372

15.2. Marketing channels for liquid milk

Milk Producers

Dairy

cooperative Processing

plants

Bars & shops

Consumers in the areas Consumers in Babile, Harer,

 Awadey, Haromaya, and Dire
Dawa.

16. Cost Benefit Analysis (Benefits and Possible Impact)

Economic viability is an important consideration for the sustainable utilization

of the dairy unit. About half of the liquid milk will be processed into yoghurt
and the rest will be divided equally between pasteurized milk and cheese. The
capacity of the plant is about 340 liter/production shift/day. The economic
analysis of the proposed unit indicates that investment in dairy Development is
quite profitable. This will enhance possibilities for sustainability. The benefit
cost ratio is about 819,078 ETB and the capital recovery/cycle is almost three
years. The internal rate of return (IRR) on the proposed investment is pretty
high. Above all; the project will hopefully prove to be a success story that
attracts the attention of the local community. Processing of dairy milk with the
appropriate technology will help enhance the marketability of this perishable
product on one hand and will help eliminate the health hazards associated with
unpasteurized loose milk. It will also contribute to the food and nutritional
security in addition to enhance employment opportunity and income for women
in the poor villages.

Economic viability is an important consideration for the sustainable utilization

of the dairy unit. About half of the liquid milk will be processed into yoghurt
and the rest will be divided equally between pasteurized milk and cheese. The
capacity of the plant is about 1000 liter/production shift/day. The economic
analysis of the proposed unit indicates that investment. Divided equally between
pasteurized milk and cheese. The capacity of the plant is about 340
liter/production shift/day. The economic analysis of the proposed unit indicates
that investment in dairy processing is quite profitable. This will enhance
possibilities for sustainability. The benefit cost ratio is about 1.12 and the
capital recovery/cycle is almost one year. The internal rate of return (IRR) on
the proposed investment is pretty high reaching about 92 %. Above all, the
project will hopefully prove to be a success story that attracts the attention of
the local community. Processing of dairy milk with the appropriate technology
will help enhance the marketability of this perishable product on one hand and
will help eliminate the health hazards associated with unpasteurized loose milk.
It will also contribute to the food and nutritional security in addition to enhance
employment opportunity and income for women in the poor villages.

18. Social Aspect Analysis

The social impact appraisal is concerned with the broader social effects of the
project on people.

The social benefit that could be derived from the intended project is presented
as follows.

18.1. Employment opportunities

As a result of the existence of the project could be able to create jobs for 10
professionals with an average family size of six people the project could provide
sustainable benefit to a total of 60 people.

18.2. Environmental Impact Assessment of The Project

Environmental aspects are the fundamental for the sustainability assessment of
the current and novel designs of any new project. In this regard the plant will
undertake a separate and detail environmental impact assessment